Q1 2020 Results 29 April 2020
Cautionary statement regarding forward-looking statements This presentation may contain forward-looking statements. Forward-looking statements give the Group’s current expectations or forecasts of future events. An investor can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as ‘anticipate’, ‘estimate’, ‘expect’, ‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products or product approvals, future performance or results of current and anticipated products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, dividend payments and financial results. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulations, UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Investors should, however, consult any additional disclosures that the Group may make in any documents which it publishes and/or files with the US Securities and Exchange Commission (SEC). All investors, wherever located, should take note of these disclosures. Accordingly, no assurance can be given that any particular expectation will be met and investors are cautioned not to place undue reliance on the forward-looking statements. Forward-looking statements are subject to assumptions, inherent risks and uncertainties, many of which relate to factors that are beyond the Group’s control or precise estimate. The Group cautions investors that a number of important factors, including those in this presentation, could cause actual results to differ materially from those expressed or implied in any forward-looking statement. Such factors include, but are not limited to, those discussed under Item 3.D ‘Risk factors’ in the Group’s Annual Report on Form 20-F for FY 2019 and any impacts of the COVID-19 pandemic. Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this presentation. A number of adjusted measures are used to report the performance of our business, which are non-IFRS measures. These measures are defined and reconciliations to the nearest IFRS measure are available in our first quarter 2020 earnings release and Annual Report on Form 20-F for FY 2019. All expectations and targets regarding future performance and the dividend should be read together with “Assumptions related to 2020 guidance and 2016-2020 outlook” on page 41 of our first quarter 2020 earnings release. 2
Agenda Emma Walmsley, Q1 2020 progress and update Chief Executive Officer on COVID-19 response Luke Miels, Business update President, Global Pharmaceuticals Q1 2020 financial results Iain Mackay, Chief Financial Officer Summary Emma Walmsley, Chief Executive Officer Q&A: Dr Hal Barron, Chief Scientific Officer and President, R&D David Redfern, Chief Strategy Officer, Chairman of ViiV Brian McNamara, Chief Executive Officer, GSK Consumer Healthcare Roger Connor, President, Global Vaccines 3
Emma Walmsley, CEO 29 April 2020
Significant mobilisation in response to COVID-19 To help people do more, feel better, live longer Solutions People Business continuity - Vaccines: adjuvant - Focus on health and well - Supply chain resilience and collaborations being agility - Therapeutics: collaboration - Support 20,000+ essential - Proactive measures and with Vir Biotechnology workers guidance to support clinical trials - Diagnostics: partnering to - High frequency engagement - Maintaining IPT c critical provide support - Rapid mobilisation to home- delivery - Donations: PPE, reagents working and funds 5
GSK pursuing solutions based on four principles Solutions Using our science , technology, portfolio and resources to support development of products for prevention and treatment of COVID-19 and the overall global response Working in Global Commitment Pandemic Partnership approach to access preparedness 6
GSK vaccines collaborations Strategic approach to support development of vaccines, as fast as possible – 7 collaborations exploring potential of adjuvanted COVID-19 vaccines – Sanofi collaboration: – Ph1 studies expected to start 2H20 – Aim for vaccine to be available 2H21* – Scale to potentially produce 100s millions of doses annually – More data in coming months – Committed to global access – Short term profits from collaborations reinvested into COVID R&D and pandemic preparedness * Subject to successful clinical development and regulatory approvals Does not include Vir vaccine collaboration and 2 additional collaborations not yet disclosed 7
Therapeutic approaches: new collaboration with Vir* – Vir’s unique anti-viral platform complements GSK’s immunology focused R&D + approach – VIR-7831 and VIR-7832 with Ph2 studies in COVID-19 expected to begin in next 3-5 months – Equity investment of $250 million, shared development costs *Subject to closing which is expected imminently. Regulatory clearances obtained 8
Strong start to 2020 Including some stock building Respiratory products +38%* Pharmaceuticals Group sales +19%, +6% CER HIV sales +8%; dolutegravir +9% pro forma +10% Benlysta +24% Zejula sales of £81m, +93%** 29.4% Adjusted operating margin; Vaccines 0.9pp pro forma Shingrix sales of £647m, +79% +19% CER improvement Meningitis sales +11% Total EPS 31.5p, +89%; Pro forma +11%, (+14% excluding brands Adjusted EPS Consumer divested or under review) 37.7p, +26% Healthcare Double digit pro forma growth in oral health, +46% CER pain relief, VMS and Respiratory FCF £531 million All growth rates and margin changes at CER. VMS: vitamins, minerals and supplements The definitions for non-IFRS measures are set out on pages 9, 10 and 40 of our First Quarter 2020 earnings release, and reconciliations are set out on pages 21 and 39 9 * Respiratory includes the Ellipta portfolio and Nucala ** Zejula sales consolidated from 22 January 2019
Q1 progress made on our 3 priorities 2020 focus ✔ Regulatory submissions accepted for Zejula 1LM ovarian cancer, belantamab mafodotin, and dostarlimab Innovation ✔ CAB+RPV in HIV approved in Canada; US resubmission • Execution of launches expected mid year • Continue to strengthen pipeline ✔ Fostemsavir filed in Europe for multi-drug resistant HIV in adults ✔ Performance Delivered growth and operating performance • Driving growth and operating performance ✔ Launch ready Specialty capabilities • Build specialty capability • Integration of Pfizer consumer health Continued delivery of Consumer Healthcare JV integration; ✔ • Prepare for separation completed divestment of Horlicks plus others ✔ Initiated Separation Preparation Programme Trust • Regular updates on innovation ✔ • Global health focused for impact Multiple COVID-19 solutions approaches initiated • Modern employer ✔ Actions taken to support employees and business continuity Culture 10
Business update Luke Miels, President Global Pharmaceuticals
Pharma commercial performance Performance highlights COVID-19 impact & ways of working Continued strong underlying performance across new Weekly TRx volume 60,000 350,000 Weekly TRx volume products: 300,000 55,000 250,000 Trelegy +>100%, growth in class and share in all key 50,000 200,000 markets; US asthma approval expected 2H 20 45,000 150,000 Nucala +38%, autoinjector self-admin launches in 40,000 100,000 France, Spain and Japan; US/EU filings for nasal polyps in 2H 20 * Benlysta + 24%, driven by increased HCP engagement Breo Ventolin Trelegy Anoro Advair + AG and sc formulation – COVID-19 impact towards end of Q1 Zejula +93%, (vs low comparator due to acquisition at end of Jan 2019); share of new starts in the US – Acceleration of digital commercial practices: increasing to 45% benefitting from increased HCP – Increased digital HCP engagement with engagement and QUADRA data eDetailing and eSales aids Dovato & Juluca >100%, with increased uptake; – Evaluating virtual speaker programmes Dovato benefitting from inclusion in guidelines – Plan to re-engage post COVID-19 quickly 12 All growth at constant exchange rates * Source: TRx data from IQVIA
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